PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6b 
ACTION ITEM          Date of Meeting  November 6, 2012 

DATE:    October 29, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    David Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  North Satellite Refurbish Baggage System (CIP #C800555) 
Amount of This Request: $3,760,000       Source of Funds: Airport Development Fund,
Future Revenue Bonds 
Est. State & Local Taxes: $1,374,000       Est. Jobs Created: N/A 
Total Project Cost: $22,000,000 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to proceed with the North
Satellite Refurbish Baggage System project; direct staff to prepare design documents; and use 
Port crews to support site investigation needed to develop the contract documents. The total
amount of this request is $3,760,000, and the total projected cost is $22,000,000. 
SYNOPSIS: 
This baggage system is now being used by United Airlines, but, as part of the Airline
Realignment, Alaska Air Group (AAG) will displace United and move to the North Satellite
(NSAT). This project will refurbish existing baggage systems in support of AAG's expanding
operations at NSAT and continued use of Concourse D. AAG's baggage volumes are an
estimated five times greater than United's requirements. The work will extend the service life for
portions of the C92 systems, C88 North Satellite systems, and C88 tunnel systems. This project
is a component of the North Sea-Tac Airport Renovation (NorthSTAR) program and is included
in the 2013-2017 capital budget and plan of finance. 
The project will replace aging conveyor belts, motors, drives, and controls of the existing
systems, as required to improve reliability and full functionality. The project will speed up the
tunnel conveyors, if further analysis during design shows that this would provide significant
operational benefits. To minimize project costs and component replacements in refurbishing the
systems, the Port and AAG worked together to develop the design criteria and clear metrics to
determine whether components need replacement. Risk and lifecycle cost analyses will be
developed using maintenance data. Airport staff and representatives from AAG collaborated and

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 2 of 6 
refined the scope of the project during the planning phase and will continue to do so during the
design phase. 
BACKGROUND: 
As part of the Airline Realignment, United Airlines' relocation from the North Satellite to
Concourse A, AAG's baggage handling consultant evaluated the existing systems and conditions
and prepared a detailed analysis of each system's performance requirements to meet future
baggage volumes. These volumes are based on AAG's future growth projections. The scope of
work planned under this project is a result of AAG's previous study and Port staff input. It
represents a critical component in providing improved baggage handling systems for AAG. AAG 
prefers to continue all baggage makeup operations on the C92 system under Concourse D to
allow for early completion of the North Satellite baggage refurbishment prior to its use. The C88
system will be shut down during construction to allow for early completion of the refurbishment. 
The typical (or standard) design life of a baggage system is 15 years. The current C88 tunnel
systems and C88 North Satellite systems are nearly 25 years old, and the current C92 system is
nearly 20 years old. The longevity of the current system can be attributed to: 1) the current
running speed of the conveyors is relatively slow, resulting in minimal wear on the conveyor
components; 2) the current low demand on the system, is approximately 3,000 bags per day on a
system designed for up to 15,000 bags per day; and 3) the maintenance program of the existing
system is proactive and extensive. 
PROJECT JUSTIFICATION: 
Once AAG's relocation to the North Satellite is complete, the volume of AAG's projected
baggage will tax these systems. The conveyor speed may be increased, which will increase the
wear and tear on the conveyor components. The baggage volume on the systems will be
increased, which will increase the running time as well as the resistance on the motors. Finally,
the operating time of the systems will be increased, which will decrease the available
maintenance operation window. 
Port Maintenance has statistical data metrics that tie passenger traffic to critical failure of
conveyors. Although the data cannot quantify impacts to airline operations, it shows that with
increasing bag traffic, there is increased critical failure of components. Currently, at peak loads
the system has a critical failure once every three days. This peak load is AAG's baseline. If
refurbishment of the conveyors is not completed before the increased demand, it is reasonable to
expect there will continue to be a critical failure at least once every three days at baseline levels,
with an increased frequency of critical failures during AAG's peak loads. 
Another problem addressed in this project is the congestion of the C1 sortation loops. Currently,
all transfer bags are conveyed through the central C1 sortation loops. These loops get congested 
and may cause delivery times to increase during peak operations. The proposed mini-sort system
will read bags at the C92-TX1 transfer input belt and divert most of them to the appropriate
sortation systems before they enter the C1 loops, creating baggage sortation efficiencies.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 3 of 6 
Project Objectives: 
1.  Improve the long-term reliability of the baggage conveyance systems. 
2.  Increase the overall speed of the conveyors, but not the overall baggage capacity (unless
necessary). 
3.  Reduce baggage volume pressure on C1 sortation loop. 
4.  Extend the service life of the systems. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
The C92 systems between the C1 sort loops and the C92/C88 connection, the C88 tunnel
systems, and the C88 North Satellite systems will be refurbished and/or overhauled. A mini-sort
system will be installed to presort transfer bags at the C92 transfer input to sort bags directly to
the C92 and C88 systems, instead of sending them to the C1 sortation loops, which will reduce 
C1 sort-loop bag volume pressure. 
The scope includes the following elements: 
1.  Refurbish North Satellite tunnel and pier conveyor: Replacement or refurbishment of
motors, gears, conveyor belts, and support equipment. 
2.  Replace pushers: Total replacement of all internal pusher hardware and components in
the C88 system. 
3.  Add mini-sortation conveyor system at C92-TX1 transfer input to presort transfer bags. 
4.  Upgrade / replace programmable logic controllers (PLCs) at C92. 
5.  Refurbish C1 to the C88 cross-over: Replacement or refurbishment of conveyor sections,
motors, gears, belts, and support equipment. 
6.  Upgrade of all C88 computer systems and programmable logic controllers (PLCs). 
7.  Replace automatic tag readers (ATRs) at C88 North Satellite systems and C1 system. 
Suggestions for possible addition to the scope include the following improvements. These will be
prioritized during design and added only if justified based on the criteria and metrics, the benefit
to the systems, and the availability of funds within the current budget: 
1.  Add photocells in C88 sortation 
2.  Add a C1 recirculation automatic tag reader (ATR) 
3.  Replace motor control panels (MCPs) for C88 sortation system 
4.  Refurbish the C92 sortation system conveyors 
5.  Refurbish the C92 sortation system pushers 
6.  Refurbish the C92 recirculation system conveyors 
Following design, the future construction authorization request will include the final list of
project scope items. 
Schedule: 
Commission Authorization of Design         November 6, 2012 
Design Start                        November 2012 
Commission Auth. of Construction           July 2013

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 4 of 6 
Construction Start                     September 2013 
Construction End                    October 2014 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary:        Capital      Expense      Total Project 
Original Budget                      $22,000,000          $0   $22,000,000 
Revised Budget                           $0          $0         $0 
Previous Authorizations                        $0          $0          $0 
Current request for authorization             $3,760,000           $0    $3,760,000 
Total Authorizations, including this request      $3,760,000           $0    $3,760,000 
Remaining budget to be authorized          $18,240,000          $0   $18,240,000 
Project Cost Breakdown:             This Request   Total Project 
Construction Costs                            $0   $14,463,000 
Port furnished equipment                       $0          $0 
Sales tax                                     $0    $1,374,000 
Outside professional services                $2,169,000    $2,169,000 
Aviation PMG and other soft costs            $1,591,000    $3,994,000 
Total                              $3,760,000   $22,000,000 
Budget Status and Source of Funds: 
This project, CIP #C800555, is included in the 2013-2017 capital budget and plan of finance.
Funding for the project will include existing revenue bonds and future bonds. As disucussed at
the plan of finance briefing on October 23, 2012, the Port plans to issue revenue bonds in 2013
or 2014 to fund a number of projects in the 2013  2017 capital budget. 
Financial Analysis and Summary 
CIP Category                     Renewal/Enhancement 
Project Type                      Terminal Infrastructure 
Risk adjusted Discount rate            N/A 
Key risk factors                     N/A 
Project cost for analysis                $22,000,000 
Business Unit (BU)                  Terminal 
Effect on business performance          NOI after depreciation will increase 
IRR/NPV                   N/A 
CPE Impact                   $0.11 increase in 2015 
Lifecycle Cost and Savings 
The addition of the mini-sort system will increase the amount of equipment that must be
maintained and repaired. As such, it is estimated that the additional annual costs for maintenance

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 5 of 6 
and repair of the conveyor systems will increase by an estimated $48,000 annually, including
labor and materials. 
STRATEGIC OBJECTIVES: 
This project contributes to the Port's Century Agenda Goal to "Meet the region's air
transportation needs at Sea-Tac Airport for the next 25 years." 
ENVIRONMENTAL SUSTAINABILITY: 
This project demonstrates environmental sustainability by improving existing Port assets and
better utilizing existing resources. This project will utilize Energy Star and systems/equipment
with increased efficiencies, resulting in less demand on Port utilities. 
BUSINESS PLAN OBJECTIVES: 
The anticipated growth in domestic and international enplanements will require additional
capacity in baggage processing for all airlines. This supports the Aviation Division's strategic
goal of "Operating a world-class international airport by anticipating and meeting the needs of
our tenants, passengers, and the region's economy." 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1 - This alternative involves a four-bay North Satellite expansion that increases the
number of gates from 15 to 19. In this alternative, AAG would take over all 11 existing baggage
sortation piers on the apron level. This would provide 66 cart positions of the 80 necessary to
support today's operation levels. The remaining 14 carts would be made-up on two new flat plate
make-up devices located in the building expansion footprint. This is not the recommended
alternative. 
Alternative 2  This alternative involves using the existing building footprint to maximize
baggage operations in the North Satellite. All existing conveyors in the North Satellite would be
demolished and replaced with new main lines, manual encode, recirculation, and eight new flat
plate make-up units to support 80 cart positions necessary for both low and high growth. The
existing pilot's lounge would be demolished to accommodate all necessary make-ups. This is not
the recommended alternative. 
Alternative 3 This alternative uses an efficient cost approach for the baggage handling system
as a result of the AAG's relocation plan. The work is limited to refurbishment of the baggage
handling system to increase system reliability. Complete refurbishment of the North Satellite
tunnel conveyors will ensure reliability for the major portion of Alaska's sortation system. In this
alternative, AAG would take over all 15 existing North Satellite gates and utilize all 11 existing
baggage sortation piers on the apron level. This would provide 66 cart positions of the 80
necessary to support today's operation levels. The remaining 14 cart positions would be located
in Concourse D using three existing sortation piers. This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Airport Overall Baggage System Map

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 6 of 6 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
June 26, 2012 - The Port Commission was briefed on the North STAR program. 
April 10, 2012 - The Commission authorized the execution of consultant contracts for the
NorthSTAR program, including design and construction support services; program management
services; and the completion of site surveys for regulated materials management, in the amount
of $1,200,000.